Kri-kri Milk Industry S.a. · ATHEX:KRI
Kri-kri Milk Industry — 14th Annual Greek Roadshow - London 2019
26 slides from Kri-kri Milk Industry's conference presentation, September 2019
Slide 1: Company Presentation September 2019
COMPANY PRESENTATION September 2019
Slide 2: Table of Contents
Table of Contents • KRI KRI at a glance • Strategic Choices • Risk of Brexit • Facilities, CapEx, Location • Hints for Financial Results • Share information | Sep 2019 | 2
Slide 3: KRI KRI at a glance
KRI KRI at a glance 94 Sales per business unit (€m) Basic Figures 79 25 68 67 67 63 22 58 23 21 20 Ice Cream 23 23 Yogurt FY 2018 Δ 2019Η1 69 57 45 40 45 47 35 Turnover € 94 m. +13% 2012 2013 2014 2015 2016 2017 2018 Exports € 34 m. +33% EBITDA (€’000s.) & EBITDA Margin Financial Position Indicators
Slide 4: KRI KRI at a glance: Achievements
KRI KRI at a glance Achievements ✓ Exports Growth ✓ Performance during Greek crisis -24% 250 239 226 GDP(€bn) 205 190 184 185 185 185 187 191 34,2 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 24,1 Kri Kri Turnover & Profit before Taxes Performance (€m) +137% +307% 54,5 94,2 16,0 29,1 12,0
Slide 5: Our people... Make a Difference!
KRI KRI at a glance Our people... Make a Difference! An experienced and effective management team Number of employees Employee Satisfaction Survey 2018 380 • 96% «I feel that the Administration is capable of running the company» 344 288 301 309 • 95% «I feel like I'm actually contributing to the com
Slide 6: Basic Segments
KRI KRI at a glance Basic Segments (€m) Yogurt Greece Ice Cream Greece 2018 1H2019 trend 2018 1H2019 trend Sales: 39,1 +7,4% Sales: 20,7 -5,6% EBIT: 5,1 -6,1% EBIT: 3,0 -10,0% Yogurt Exports Ice Cream Exports 2018 1H2019 trend 2018 1H2019 trend Sales: 29,8 +35,8% Sales: 4,4 +17,6% EBIT: 5,6 +25,6% E
Slide 7: Strategic Choices/ Yogurt Greece
2018: €39,1m Strategic Choices/ Yogurt Greece Δ 19Η1: +7,4% Market size in retail Market share Market Share per Supplier prices per Category (%,€m) (Share >10%) Price index 16,1 +0.9% yoy 6% KRI KRI 15,5 91 11% 11 21,3 Strained Leader 21,2 94 21 Set 9% 11,5 16 Competitor 2 127 183 €m 100 55% Fruit 1
Slide 8: Strategic Choices/ Yogurt Greece: Branded products strategy
2018: €39,1m Strategic Choices/ Yogurt Greece Δ 19Η1: +7,4% Branded products strategy Strained • Aiming for the top positions • Focus on Strained Category Set 100 55% Fruit Functional Evolution of Kri Kri Market Share (vol.) Kids Infant Year Market Share Improving quality by constantly investing Mar
Slide 9: Strategic Choices/ Yogurt Greece: Innovation and infant yogurt
2018: €39,1m Strategic Choices/ Yogurt Greece Δ 19Η1: +7,4% Branded products strategy Innovation Leader in kids yogurt category Entering the Infant Yogurt ✓ High protein and super foods Category (Market Share 37,3% in Volume) Opportunity: Expanding to new New Product: subcategories of Functional Kri
Slide 10: Strategic Choices/ Yogurt Greece: Private label strategy
2018: €39,1m Strategic Choices/ Yogurt Greece Δ 19Η1: +7,4% Private label products strategy Indicative Customers in Greece KRI KRI produces 70-80% of all Private Total Share of “Mouth” >25% Label yogurt products in Greece Kri-Kri Branded 16% Kri-Kri Priv.Label 11% Kri 16,1 Private Label 14,2 1 in 4
Slide 11: Strategic Choices/ Yogurt Exports
2018: €29,8m Strategic Choices/ Yogurt Exports Δ 19Η1: +35,8% United Kingdom Italy Germany 176 279 328 Rest Yogurt Greek/Greek style Yogurt £m. €m. €m. Total Yogurt: 1.514(£m) Total Yogurt : 1.600(€m) Total Yogurt : 2.246(€m) Source: Nielsen, IRI (Dec 2018) | Sep 2019 | 11
Slide 12: Strategic Choices/ Yogurt Exports: Private label and opportunities
2018: €29,8m Strategic Choices/ Yogurt Exports Δ 19Η1: +35,8% Private label products strategy Opportunities • Expanding PL products portfolio • Private label products capture a big share of consumers wallet in Europe. • Placing branded products to existing customers • It offers a strategic way to en
Slide 13: Strategic Choices/ Yogurt Exports: Strategy per Country
2018: €29,8m Strategic Choices/ Yogurt Exports Δ 19Η1: +35,8% Strategy per Country UK Central Europe • Expanding PL products portfolio • Maintaining position in Germany • Placing branded products to existing customers • Increasing PL products sales in Belgium and France H1 results: >30% Growth H1 re
Slide 14: Strategic Choices/ Ice cream Greece
2018: €20,7m Strategic Choices/ Ice cream Greece Δ 19Η1: -5,6% Market size in retail prices Market Share per Brand 15,0 Leading Brand 20,5 220 €m Brand 3 13,1 Brand 4 12,6 Private Label 25,2 Volume Market trend -6.3% Source: Nielsen (Jul 2019) | Sep 2019 | 14
Slide 15: Strategic Choices/ Ice cream Greece: Branded products strategy
2018: €20,7m Strategic Choices/ Ice cream Greece Δ 19Η1: -5,6% Branded products strategy ✓ The only Greek ice cream company with nationwide sales network ✓ Expand distribution network with 950(+7%) extra points of sale ✓ Increased market share ✓ Maintain high profitability ✓ Collaboration with well-
Slide 16: Strategic Choices/ Ice cream Exports
2018: €4,4m Strategic Choices/ Ice cream Exports Δ 19Η1: +17,6% Private label products strategy Looking for opportunities for Private Global Market size $ 58 bn Label products in European Market European Market Size $ 18 bn Target Won a contract with European market Size Private label $ 10 bn market
Slide 17: Risk of Brexit
Risk of Brexit Absolutely ready on technical level Base case scenario: No import duties • Non-tariff barriers adding 2.5-4% to import costs • Sterling value to fall by 10% = Increase in total cost by 12.5-14% 50% of extra cost is absorbed throughout supply chain Decline in our profit • Producer marg
Slide 18: Facilities & CapEx
Facilities & CapEx • Modern production facilities in buildings Ε=25.000m² • Capability of further development in land Ε= 72.000 m² Three-year Investment Plan (2019-2021) 4 Investments totaling €28m. Prod.Capacity Increase have been included in the Modernization 5 12 Total:€27mil investment law to su
Slide 19: Hints for H1 2019 Financial Results
Hints for H1 2019 Financial Results Yogurt Greece / Decline in margin Ice cream Greece / Decline in sales ➢ Competitive pressure ➢ Adverse weather conditions mid March-mid May ➢ Allowance for bad debts ➢ Launching costs for entering infant yogurt category Yogurt Export / Decline in margin Ice cream
Slide 20: KRI KRI Share Information
KRI KRI Share Information Share Performance Stock price 5y Performance +165% 2012 2013 2014* 2015 2016 2017 2018 (as per 12/9/2019) Total stockholder 6,50 3,9% 34,4% -8,0% 5,9% 6,2% 59,0% 44,7% return 6,00 5,50 Dividend yield 3,9% 3,0% 0,0% 3,2% 4,7% 3,0% 3,5% 5,00 Share price increase 4,50 0% 31,4%
Slide 21: KRI KRI Share Information
KRI KRI Share Information Share Shareholders’ Contact information structure information Market: Main market Tsinavos Family : 74% KRI KRI S.A. MILK INDUSTRY 3rd km Serres-Drama Sector: Food & Beverage Legal Entities : 16% Serres PC 62125 Ticker symbols: Individuals : 10% Greece Athens Stock Exchange
Slide 22: Investment Proposal Summary
Investment Proposal Summary Investment ✓ One of the few listed companies globally with clear exposure to the Greek Yogurt investment theme. ✓ High returns and dividend payments to shareholders. Management ✓ An experienced and loyal management team that has led KRI KRI from a local company to a major
Slide 23: Appendix 1: Key Financial figures
KRI KRI / Αppendix 1 Key Financial figures IFRS - €m 2018 2017 2016 Sales 94.23 79,2 66,6 Margins 2018 2017 2016 Gross Profit 36.66 28,4 25,7 Gross Profit 38.9% 35,9% 38,7% EBITDA 17.29 12,4 11,0 EBITDA 18.3% 15,7% 16,5% EBIT 14.48 9,9 8,9 EBIT 15.4% 12,5% 13,3% Profit before taxes 14.24 9,9 8,2 Pro
Slide 24: Appendix 2: H1 2019 Financial Results
KRI KRI / Αppendix 2 H1 2019 Financial Results IFRS - €m H1 2019 H1 2018 H1 2017 Sales 57.4 51.0 41.2 Margins H1 2019 H1 2018 H1 2017 Gross Profit 22.4 21.4 16.3 Gross Profit 39.0% 42.0% 39.5% EBITDA 12.2 11.7 8.2 EBITDA 21.3% 23.0% 19.9% EBIT 10.6 10.3 6.9 EBIT 18.5% 20.2% 16.9% Profit before taxes
Slide 25: Appendix 3: H1 2019 Operating result per Segment
KRI KRI / Αppendix 3 H1 2019 - Operating result per Segment Δ Gross Δ EBIT Gross IFRS - €m Sales YoY% Gross Margin Margin EBIT EBIT Margin Margin Profit (bps) (bps) Yogurt Total 41,0 19,1% 14.2 34.7% -299 7.1 17.3% -179 Greece 21,8 7,4% 8.3 38.1% -217 3.5 15.9% -227 Exports 19,2 35,8% 5.9 30.9% -316
Slide 26: Legal Disclaimer
Legal Disclaimer This presentation was prepared by KRI KRI S.A. The information contained herein has been obtained from company and external sources believed to be reliable, but not guaranteed as to its accuracy or completeness. The information contained herein also includes forward- looking stateme
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